Context 2: THE SOFT FRUIT INDUSTRY

Extract A: UK strawberry production, 2010 and 2022

UK strawberry production, 2010–2022 (thousands of tonnes)

Source: Defra annual statistics

Extract B: Market dynamics in the UK soft fruit sector

Soft fruit, such as strawberries and raspberries, represents one of the fastest-growing categories in UK agriculture by retail value. However, the supply chain is highly asymmetrical. Almost all domestic soft fruit is purchased by a small group of fresh produce marketing organisations or directly by just five major supermarket chains that dominate the UK grocery market.

UK growers complain that while they operate as price takers in a highly competitive farming market, they face a combination of monopsony power and oligopoly standing between their crops and the consumer. Growers argue that major supermarket buyers hold excessive leverage when setting contract terms. These powerful buyers can demand low prices, late payment terms, and strict cosmetic standards. Meanwhile, these same supermarkets protect their own high retail margins by operating as oligopolists when selling the fruit to the general public.

Supermarkets counter that UK growers must remain internationally competitive, noting that alternative cheap imports are readily available from Spain and North Africa during shoulder seasons. Growers warn that if squeeze policies push family-owned farms into insolvency, domestic supply security will collapse, leaving shoppers dependent on imports subject to price volatility.

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